North Korean and Chinese companies are building a sprawling wholesale complex in Pyongyang that’s set to open later this year, according to a Chinese businessman, in the latest sign of expanding economic ties between the two countries.

In a video posted on Chinese social media platform Douyin on April 1, the entrepreneur shares footage purportedly captured from a business trip to the DPRK the previous month, showing the exterior of a warehouse-like building in the capital’s new Hwasong District.

NK News analysis of satellite imagery confirms that construction on the building in northern Pyongyang began around May 2023 and that the exterior appeared largely complete as of last month.

A blueprint shown in the footage identifies the site as the “Hwasong Wholesale Exchange Market” (화성도매교류시장).

The Douyin video indicates that the building covers 68,000 square meters (732,000 square feet) and says it will be the “largest” wholesale market in the country. The caption states that it is expected to open on Oct. 1.

The footage captures apparent Chinese visitors entering a building at the complex, showing an unfinished interior with bare concrete floors and exposed ceiling structures.

According to the video, Pyongyang authorities approved the construction of the complex as a major national trade hub to facilitate the procurement and distribution of goods. It is expected to handle a wide range of products, including construction materials, home appliances and furniture, the caption states.

Computer renderings displayed on site and attributed to the Paektusan Institute of Architecture show additional facilities such as sports courts and conference venues, indicating the project is designed as a multipurpose commercial and administrative complex rather than just a wholesale market.

The video’s caption describes the project as a joint venture between Chinese and North Korean companies. This could present sanctions concerns, as U.N. Security Council Resolution 2375 prohibits member states from creating joint cooperative entities with DPRK firms on a commercial basis.

North Korea claims it has built 50,000 new homes in the Hwasong District over the last few years, continuing construction on stage five of the project this year. 

State media has portrayed the neighborhood as a showcase for expanded consumer offerings, aligning with leader Kim Jong Un’s push to introduce more “modern” living standards for elites that are comparable to middle-class lifestyles in neighboring countries.

North Korea continues to rely heavily on China for infrastructure-related materials, with official trade data indicating that Beijing remains Pyongyang’s biggest trade partner despite the DPRK’s flourishing ties with Russia.

A social media post reported that luxury hotels that opened in December near Mount Paektu sourced their carpets from Chinese suppliers. Chinese customs data also shows $2.47 million in exports of plywood, veneered panels and similar laminated wood products to North Korea in 2025. The materials fall under HS code 4412 and are typically used for construction and interior decoration.

Colin Zwirko contributed reporting to this article. Edited by Bryan Betts